Personal Loans

Representative example: A loan of £5,000 over 36 months will cost you £204.54 per month at a representative 30.8% APR. Total amount repayable will be £7,363.28 which includes £2,363.28 interest at 27.2% pa (fixed). The total amount of credit you'll receive is £5,000.00.

My Community Finance is a credit broker, not a lender.

How do I get a personal loan?

You can get a quote for a personal loan with one of our partner credit unions, My Community Bank or Castle Community Bank, using the online form on this website. 

The process is straightforward, and we’ve listed the steps you’ll take below:

  • First, you need to decide how much you want to borrow and over what time period you want to pay it back. The credit unions we work with provide loans between £1,500 and £25,000 and payback periods from 12-60 months.
  • You’ll then request a personalised quote. To provide you with this, we’ll perform a soft credit check which won’t affect your credit score, and only you’ll be able to see a record of it on your credit report.
  • If you pass the eligibility criteria set by our partner credit unions, we will let you know the APR you will be offered - your personalised quote is valid for 30 days. 
  • We will then send you a loan agreement, coupled with terms and conditions of the loan contract, for you to review to ensure this is the right product for you. Once you have read and are happy with the terms of the loan you’ll sign your loan agreement.
  • To complete our final checks, we will then conduct a hard credit search on your credit report, which other lenders or any organisation with access to your report will be able to see. 
  • The credit union will aim to make a final decision about your personal loan within two working days. If successful, you should receive your money within approximately four working days of your application.

How much can I borrow with a personal loan?

The credit unions we work with offer loans between £1,500 and £25,000. How much you’ll be eligible to borrow depends on your circumstances and what you want to borrow the money for. 

Use our loan calculator to get an idea of how much you could borrow from one of our partner credit unions.   

How long do I have to pay back a personal loan?

This will depend on how much you want to borrow and the APR of the loan. The credit unions we work with offer loans over 12-60 months. If you choose to pay back your loan over a longer period of time your monthly repayments will be less and you may be able to borrow more, but you could end up paying back more in interest.

Before you commit to a loan, it’s essential to factor in any significant life changes like getting married, having children and moving house because you need to be sure you’ll be able to afford the monthly repayments throughout the entire term of your loan.  

What can I use a personal loan from a credit union for?

You can use a loan from a credit union to consolidate your existing debts, saving money on interest on existing unsecured borrowing, and helping you budget. 

Some people use a personal loan to spread the cost of large purchases, such as a new car, or paying for an extension to a property, an unexpected expense, or significant life events like paying for a wedding or medical expenses. 

How much does a personal loan cost?

This will depend on the loan's APR (Annual Percentage Rate). 

The APR of a loan indicates how much it will cost you. It includes the cost of borrowing over a calendar year, including interest and any fees. 

The APR you’re offered may vary between customers based on personal circumstances. 

Use our loan calculator to get an idea of how much a loan from one of our partner credit union’s could cost you. 

How long will it take to get a personal loan?

Once you’ve filled out the application form on our website, the credit union will make a decision about your personal loan within approximately two working days, and you should receive your money within four working days of your application, sometimes sooner. 

How do personal loans affect your credit score?

This will depend on how you manage your personal loan. 

A personal loan may help to improve your credit score: 

  • Keeping up with your monthly repayments may help to build your payment history 
  • Having a variety of different borrowing on your credit report can sometimes help to boost your credit score 
  • Using a personal loan to consolidate debt might help to improve your credit score by replacing debts that are counted into your credit utilisation with debt that isn’t counted, meaning your credit utilisation will be reduced 

It’s important to remember that a personal loan may also damage your credit score in several ways: 

  • When you officially make an application for any type of credit, a hard credit check will be performed, leaving a record on your credit report. More than one hard credit check in a six-month time frame can sometimes put other potential lenders off because too many applications for credit in a short space of time may suggest you are in financial difficulty. 
  • If you’re late paying your monthly repayment, your credit score may be negatively impacted. 
  • If you default on your loan, a record of it will stay on your credit report for up to six years, sometimes reducing the likelihood of you being accepted for credit with other lenders or organisations, or making it more expensive for you to borrow in that time frame. 

What happens if I default on a personal loan?

A loan can be helpful in certain situations; however, if you default on a personal loan, your credit score is likely to be negatively impacted as well as: 

  • Making it more difficult to obtain credit in the future 
  • The amount you owe may increase due to late payment fees and default interest    
  • Your overdue account may be passed to debt collectors to recover the loan 
  • You may be taken to court 

If you’re struggling to pay back your personal loan, you need to let your lender know ASAP. 

Our credit union partners have specially trained agents to help you. 

In addition, you can get free, impartial advice from MoneyHelper, Citizens Advice or StepChange. 

My Community Finance

Giving savers and borrowers access to ethical lenders such as credit unions through the Community Finance Network. For you. For everyone.

My Community Finance is a credit broker, not a lender. My Community Finance is a registered trading name of Amplifi Capital (U.K.) Limited with company number 08641995 and registered address 30 Churchill Place, Canary Wharf, London E14 5EU, UK. Amplifi Capital (U.K.) Limited is authorised and regulated by the Financial Conduct Authority with FRN 718749 and FRN 902841. Amplifi Capital (U.K.) Limited is registered with the Information Commissioner’s Office with registration number ZA040320 and is a member of the Consumer Credit Trade Association (“CCTA”) with membership number CCTA1265 

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